Audit 236613

FY End

2022-12-31

Total Expended

$15.08M

Findings

4

Programs

2

Organization: St. Mary Levee District (LA)

Year: 2022 Accepted: 2023-07-02

Auditor: Darnall Sikes & Frederick CPAS

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
236263	2022-001	Material Weakness	Yes	ABCEHI
236264	2022-003	-	-	C
812705	2022-001	Material Weakness	Yes	ABCEHI
812706	2022-003	-	-	C

ALN	Program	Spent	Major	Findings
15.435	Gomesa	$14.54M	Yes	2
97.036	Disaster Grants - Public Assistance (presidentially Declared Disasters)	$544,315	-	0

Contacts

Name	Title	Type
F39RET1U5BB5	Timothy Matte	Auditee
9853805500	Jeremy Meaux	Auditor
No contacts on file

Notes to SEFA

Title: FEDERAL EXPENDITURES RELATED TO DISASTER GRANTS Accounting Policies: Expenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Non-federal entities must record expenditures related to Disaster Grants Public Assistance (CFDA 97.036) on the SEFA when (1) FEMA has approved the non-federal entitys PW, and (2) the non-federal entity has incurred the eligible expenditures. For example, federal awards expended in years prior to the fiscal year in which the PW is approved are to be recorded on the non-federal entitys SEFA in the year in which the PW is approved. Therefore, the total amount of federal expenditures to the Disaster Grants Public Assistance program of $544,315 recorded on the SEFA were incurred during fiscal year 2019, since the PWs related to those expenditures were approved by FEMA during fiscal year 2022.

Finding Details

Finding 2022-001

2022-001 Inadequate segregation of accounting functions Criteria: A strong internal control system requires the segregation of responsibilities between different individuals responsible for separate major areas of the accounting system. Condition: Due to the small number of accounting personnel, the District did not have adequate segregation of functions within its accounting system. Cause: The failure to design and implement policies and procedures necessary to achieve adequate internal control led to this condition. Effect: The likelihood that a material misstatement will not be prevented or detected and corrected on a timely basis is increased. The perpetration of fraudulent activity is easier to achieve under this condition. Recommendation: An analysis of the benefits that would be obtained by adequately segregating functions within the accounting system and the costs to employ additional individuals to achieve adequate segregation should be performed. Views of Responsible Officials and Planned Corrective Actions: This information is in the District?s separate Management?s Corrective Action Plan for Current Year Findings.

Finding 2022-003

2022-003 Cash Management U.S. Department of the Interior (passed through the State of Louisiana?s Coastal Protection and Restoration Authority) CFDA 15.435, Gulf of Mexico Energy Security Act (GOMESA) Criteria: Per 2 CFR section 200.305(b)(3), under the reimbursement method, program costs must be paid by non-Federal entity funds before submitting a payment request. Condition: The District submitted a reimbursement request that was in violation of 2 CFR section 200.305(b)(3) as described in the criteria above. Context/Questioned Costs: The District requested $372,596 of reimbursement on a reimbursement request that was submitted prior to payment of the costs by the District. We consider the total of $372,596 to be questioned costs. Cause: Inconsistent application of cash management compliance requirement. Effect: Possible noncompliance with cash management compliance requirements could result in costs being allowed by the granting agency. Recommendation: Policies and procedures should be implemented to ensure that reimbursement requests are submitted based on the requirement outlined in 2 CFR 200.305(b)(3). Views of Responsible Officials and Planned Corrective Actions: This information is in the District?s separate Management?s Corrective Action Plan for Current Year Findings.

Finding 2022-001

2022-001 Inadequate segregation of accounting functions Criteria: A strong internal control system requires the segregation of responsibilities between different individuals responsible for separate major areas of the accounting system. Condition: Due to the small number of accounting personnel, the District did not have adequate segregation of functions within its accounting system. Cause: The failure to design and implement policies and procedures necessary to achieve adequate internal control led to this condition. Effect: The likelihood that a material misstatement will not be prevented or detected and corrected on a timely basis is increased. The perpetration of fraudulent activity is easier to achieve under this condition. Recommendation: An analysis of the benefits that would be obtained by adequately segregating functions within the accounting system and the costs to employ additional individuals to achieve adequate segregation should be performed. Views of Responsible Officials and Planned Corrective Actions: This information is in the District?s separate Management?s Corrective Action Plan for Current Year Findings.

Finding 2022-003

2022-003 Cash Management U.S. Department of the Interior (passed through the State of Louisiana?s Coastal Protection and Restoration Authority) CFDA 15.435, Gulf of Mexico Energy Security Act (GOMESA) Criteria: Per 2 CFR section 200.305(b)(3), under the reimbursement method, program costs must be paid by non-Federal entity funds before submitting a payment request. Condition: The District submitted a reimbursement request that was in violation of 2 CFR section 200.305(b)(3) as described in the criteria above. Context/Questioned Costs: The District requested $372,596 of reimbursement on a reimbursement request that was submitted prior to payment of the costs by the District. We consider the total of $372,596 to be questioned costs. Cause: Inconsistent application of cash management compliance requirement. Effect: Possible noncompliance with cash management compliance requirements could result in costs being allowed by the granting agency. Recommendation: Policies and procedures should be implemented to ensure that reimbursement requests are submitted based on the requirement outlined in 2 CFR 200.305(b)(3). Views of Responsible Officials and Planned Corrective Actions: This information is in the District?s separate Management?s Corrective Action Plan for Current Year Findings.